SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010040-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 40
• Publication Date: August 19, 1957
• Content Type: REPORT

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SECRET
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /40
19 August 1957
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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SECRET
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
These biweekly reports on "Sino-Soviet Bloc Economic Ac-
tivities in Underdeveloped Areas" are prepared and issued
by a Working Group of the Economic Intelligence Commit-
tee, including representatives of the Departments of State,
the Army, the Navy, the Air Force, Commerce, and Agricul-
ture; the International Cooperation Administration; the
Office of the Secretary of Defense; and the Central Intelli-
gence Agency. Their purpose is to provide up-to-date fac-
tual information on significant developments in the eco-
nomic relations of Sino-Soviet Bloc countries with under-
developed countries of the Free World. The EIC-R-14 series
of reports, under the same title, provide periodic summaries
and analytical interpretations of these developments.
Printed and Disseminated by the
Central Intelligence Agency
SECRET
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Summary of Z vents
2 - 15 August 1957
The reported results of the Syrian-Soviet talks regarding economic
and technical aid to Syria were released by the Soviet news agency on
6 August. Officials in the Indian government are currently discussing
with a recently arrived Soviet delegation the utilization of the $126-
million loan. offered to India last fall. These two discussions are the
most significant events affecting the economic relations between the
Sino-Soviet Bloc and underdeveloped countries of the Free World dur-
ing the period 2 - 15 August 1957.
The results of the Syrian-Soviet talks, though not mentioning the
earlier reported Soviet credit of $112 million to Syria, indicated that
the USSR was prepared to engage in extensive development projects,
to offer technical assistance in several fields, and to trade Soviet
manufactures for Syrian agricultural products and raw materials.
The economic offensive of the Bloc has not been affected materially
by the recent changes in the Soviet hierarchy. Greater flexibility and
easier decision making may now be possible, however. Greater flexi-
bility has already been exhibited in the revamping of planned delivery
schedules for Yugoslav projects and in sending of a special mission
to India to discuss use of the $126-million credit.
The credit to India, not to be implemented originally until 1959,
may, as a result of the increased freedom of maneuver of the Soviet
leaders, be implemented sooner. The Indian government has decided
upon the projects to be requested and is anxious to facilitate prompt
f inancing of heavy-machinery and coal-mining projects.
India has also agreed with East Germany on a special payments
procedure aimed at obtaining capital equipment on a deferred payments
basis and at promoting trade in certain commodities. Also in South
Asia, Afghanistan signed a trade and payments agreement with Com-
munist China, and a delegation from Ceylon arrived in Communist China to
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negotiate for the renewal of the 5-year rice-rubber barter agreement
between the two countries. Afghanistan and Ceylon are increasing
their economic contacts with the USSR as well as with Communist China.
The Soviet press reports that trade between Afghanistan and the USSR
since 1950 has quadrupled and that the USSR ranked first among ex-
porters of goods to Afghanistan. In Ceylon an offer to aid the Ceylonese
rubber industry has been received from the USSR.
In Southeast Asia, Burma ended a barter agreement with Bulgaria the third Bloc country with which Burma has ended such an agreement and Indonesia contracted to buy 20, 000 metric tons of rice from North
Vietnam.
In the Middle East and Africa, Syria signed a civil aviation agree-
ment with Czechoslovakia. The Czechoslovaks have already signed an
agreement withEgypt and are trying to conclude a similar air agreement
with Lebanon. Jordan has received an offer from Poland for the purchase
of 100, 000 tons of Jordanian phosphate. Morocco recently signed a trade
agreement with Bulgaria, the third such agreement between Morocco and
a Bloc country since December 1956.
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S-E-C-R-E-T
CONTENTS
Page
I. Sino-Soviet Bloc (The Purge and the Economic
Offensive) . . . . . . . . . . . . . . . . . . .
II. South Asia . . . . . . . . . . . . . . . . . . . 2
1. Plans for Utilization of New Loan Studied
by Soviet Delegation . . . . . . . . . . 2
2. Indian Purchase of East German Textile
Machinery Under Deferred Payments
Procedure . . . . . . . . . . . . . . . 2
B. Afghanistan . . . . . . . . . . . . . . . . . 3
1. Signing of Trade Agreement with Communist
China . . . . . . . . . . . . . . . . .
2. Increase in Soviet-Afghan Trade 4
C. Ceylon . .
1. Sino-Ceylonese Trade Negotiations . . . 6
2. Soviet Offer of Economic Assistance . . . 6
B. Indonesian Trade with North Vietnam .
A. Soviet-Syrian Communique of 6 August 1957 7
B. Czechoslovak Air Services to Egypt, Syria,
and Lebanon . . . . . . . . . . . . . . . . 8
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Page
C. Polish Offer to Purchase Jordanian Phosphates . 9
D. Increasing Bloc Relations with Morocco 9
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